GDS Shake-Up: Lessons from Hawaii for African Travel Agents

Hawaiian Airlines has eliminated its GDS surcharge, a move that has resonated across the travel industry and sparked interest among African travel professionals. This decision, part of the airline’s merger integration with Alaska Airlines, signals a potential shift in distribution strategies and offers valuable insights for the African travel trade.

The removal of the \$7 surcharge, effective May 1st, is coupled with the reinstatement of Hawaiian's interisland flights on legacy GDS platforms. This reversal of a policy implemented in 2022, when Hawaiian pulled interisland inventory from GDS channels lacking New Distribution Capability (NDC), marks a notable change in approach.

A Hawaiian Airlines spokeswoman emphasized the commitment to enhancing benefits and value for both guests and partners, highlighting the importance of a collaborative approach within the travel ecosystem. This focus on partnership resonates strongly with African travel agents, who play a crucial role in connecting travelers with unique destinations and experiences.

The Hawaiian Airlines development raises important questions for the African aviation landscape. Could this signal a broader trend towards reducing or eliminating GDS surcharges? What are the implications for African travel agents, and how can they best position themselves to navigate this evolving distribution landscape?

Analysis suggests that the removal of GDS surcharges can lead to significant cost savings for travel agents. Using Hawaiian's \$7 fee as a benchmark, calculations reveal potential annual savings ranging from \$25,550 for smaller agencies to over \$511,000 for larger agencies, based on varying daily booking volumes. Extrapolating this across a hypothetical sample of 300 agencies, the estimated annual industry savings could reach a staggering \$66.4 million.

Beyond the direct financial benefits, the return of interisland flights to legacy GDS platforms simplifies booking processes for travel agents. This streamlined access to inventory enhances efficiency and allows agents to focus on providing personalized service and crafting tailored travel experiences for their clients.

However, the broader implications for African travel agents extend beyond just cost savings and operational efficiency. The Hawaiian Airlines case highlights the ongoing evolution of airline distribution strategies and the increasing importance of NDC.

While some airlines have embraced NDC as a way to enhance retailing capabilities and offer more personalized services, others have maintained a more cautious approach. The varying levels of NDC adoption among African airlines present both challenges and opportunities for travel agents.

Ethiopian Airlines, for example, has achieved Level 3 NDC certification, demonstrating its commitment to modernizing distribution. Kenya Airways has also made significant strides, becoming the first airline in Sub-Saharan Africa to distribute NDC content through the Amadeus Travel Platform. These developments suggest a growing momentum towards NDC adoption within the African aviation sector.

For African travel agents, staying informed about these evolving trends is crucial. Embracing NDC technology, while also maintaining proficiency with traditional GDS platforms, will be essential for navigating the changing landscape and maximizing business opportunities.

Building strong relationships with airlines that prioritize agent partnerships remains a key strategy. Airlines that recognize the value of travel agents and invest in programs that empower them, such as training and incentive programs, will be valuable allies in this evolving environment.

The Hawaiian Airlines development serves as a valuable case study for the African travel trade. While the specific circumstances may differ, the underlying principles of partnership, value creation, and adaptation to technological advancements hold true across the globe.

By staying informed, embracing new technologies, and focusing on providing exceptional service, African travel agents can position themselves for success in this dynamic and ever-evolving industry.